TotalEnergies SE will stick to its plan to grow in renewable power even after the results of European elections suggested that voters’ support for the bloc’s green policies was waning due to concerns over energy costs.
“We have a strategy and we’re sticking to it — energy is about the long term,” TotalEnergies Chief Executive Officer Patrick Pouyanne said at L’Automobile Club de France in Paris on Monday.
“We’ll need more electricity, which is an energy that’s growing. While I’m not certain it will be the case over the medium to long term for oil and gas.”
The mainstream political parties that supported the European Union’s sweeping Green Deal to decarbonize the bloc’s economy retained a majority in EU parliamentary elections this month, but far-right nationalist groupings ate into the support of Green parties.
The result could weaken the resolve of governments when they turn the climate-friendly policy into reality through measures that will affect households’ purchasing power or lifestyle.
That’s notably the case in countries such as France, where the National Rally — which is leading in opinion polls ahead of legislative elections slated for June 30 and July 7 — has pledged to roll back some support for new renewable power projects, home renovation requirements for landlords, and a planned ban on thermal-engine cars due in 2035.
While TotalEnergies is investing about $5 billion annually in power generation, it’s remaining wary of big bets on clean gases such as green hydrogen that require large government subsidies, because public policies can change, Pouyanne said.
The CEO also urged European policymakers to better protect the continent’s manufacturers from Chinese and US rivals, which benefit from greater labour market flexibility, cheaper energy and more abundant capital.
Pouyanne also raised concerns about the fact that these international competitors, unlike their peers in Europe, don’t have to buy carbon-emission rights.
However, he warned that the EU’s so-called Carbon Border Adjustment Mechanism won’t be an effective way of protecting the region’s businesses.
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